how to invest in stocks on cash app: step-by-step

How to invest in stocks on Cash App: step-by-step

A concise, practical walkthrough of how to invest in stocks on Cash App: this article explains what Cash App Investing is, how to open and fund an Investing account, the in-app buying and selling flows (including fractional shares), account protections, fees and tax implications, sponsored account rules, custody and settlement mechanics, and useful beginner features. If you want clear, actionable steps and neutral, factual context for small-dollar, mobile-first investing, this guide will show you what to expect and how to proceed.

Note: this guide covers equities and ETFs inside Cash App Investing. Cash App also supports Bitcoin trading separately; this article focuses on buying and selling U.S. stocks and ETFs.

As of 2025-12-30, according to Cash App Help and independent guides, Cash App Investing lets users place commission-free trades in U.S. stocks and ETFs (including fractional shares) via a mobile app operated by Cash App Investing LLC, member FINRA and SIPC.

• Overview of Cash App Investing
• Key concepts and protections
• Account setup and eligibility
• Funding methods and money flow
• How to buy stocks on Cash App
• Fractional shares, order types, and market hours
• How to sell stocks
• Fees, taxes, and limits
• Sponsored / Family accounts
• Custody, third-party brokers, and settlement
• Beginner features and suitability
• Troubleshooting and account management
• Comparison with other brokerages
• Tax reporting and recordkeeping
• References and further reading

Overview of Cash App Investing

How to invest in stocks on Cash App begins with understanding what Cash App Investing is and who operates it. Cash App Investing is a self-directed, mobile-first brokerage service embedded in the Cash App mobile wallet. The investing service is offered through Cash App Investing LLC and carried by a third-party custodian; it is designed for buying and selling U.S.-listed stocks and exchange-traded funds (ETFs), including fractional shares. Cash App's parent company is Block, and the investing service is intended for retail investors, particularly beginners and small-dollar investors who prefer a simplified mobile experience.

Key points about scope and product set:

• Cash App Investing supports U.S. stocks and ETFs only. It does not offer mutual funds, options, margin trading, bonds, or advanced order types.
• Fractional shares are supported, allowing purchases with small amounts of cash (as little as one dollar, per Cash App policies).
• Bitcoin trading is available in Cash App as a separate product; this guide focuses exclusively on equities and ETFs.

As of 2025-12-30, according to Cash App Help and coverage by consumer finance sites, Cash App Investing remains positioned as a beginner-friendly, commission-free way to access U.S. stock markets from a smartphone.

Key concepts and protections

Before you decide how to invest in stocks on Cash App, understand the protections and distinctions that apply:

• SIPC protection: Securities held in your Cash App Investing account are protected by SIPC through the broker-dealer relationship. SIPC coverage protects against loss of securities or cash held by a broker that fails; it does not protect against market losses. Users should review the Cash App Investing customer agreement and SIPC disclosures for exact terms.
• Investing account vs. Cash App balance: The Investing account is separate from your Cash App balance (the app wallet). Stocks and ETFs live in your investing account; cash balances in your wallet are governed by different protections (including potential FDIC coverage for certain linked cash sweep programs — review Cash App disclosures for eligibility and limits).
• Investment risk: SIPC does not insure against investment losses. Market volatility can reduce the value of holdings.

As of 2025-12-30, the Cash App Help pages emphasize SIPC membership and the separation between investing assets and wallet cash. Always review the official disclosures in the app before trading.

Account setup and eligibility

To learn how to invest in stocks on Cash App, you must first meet eligibility requirements and enable Investing in the app. Typical prerequisites include:

• A verified Cash App account: sign up with an email or phone number and create a Cash App profile.
• Identity verification: for Investing, Cash App requires personal information (full name, date of birth, Social Security number or tax ID, and residential address) to comply with regulatory obligations. Expect to provide documents or answer verification questions.
• Residency and age: investing typically requires U.S. residency and that you meet the minimum age for trading (often 18). Sponsored accounts (e.g., family features) may have different rules.

How to open an Investing account (step-by-step):

1. Open the Cash App mobile application and sign in.
2. Tap the Investing or Stocks tab from the home screen.
3. Follow the prompts to enable Investing — you will be asked to verify identity details and accept account agreements.
4. Once approved, you’ll see an Investing dashboard where you can search tickers, view fractional share options, and enable Auto Invest if available.

Cash App may run verification checks that can take minutes to days. As of the latest Help documentation, identity verification is mandatory for most investing features.

Funding methods and money flow

A core part of knowing how to invest in stocks on Cash App is understanding where money comes from and where it goes after trades:

• Funding sources: Purchases can be funded from your Cash App balance or a linked debit card or bank account, depending on the app’s available options. Cash App is a zero-balance brokerage model — you do not hold cash in a brokerage sweep account by default for trading; trades draw from available Cash balance or linked funding methods.
• Purchase flow: When you buy shares, Cash App debits the purchase amount (plus any regulatory fees) from your Cash balance or charges your linked debit card if insufficient funds exist in the app balance.
• Sale proceeds: When you sell stocks, proceeds (net of fees and settlement timing) are credited back to your Cash App balance. Settlement for stock trades typically follows standard U.S. market settlement rules (T+1 or T+2 depending on the instrument and regulatory changes); Cash App will display any holds or availability timing in the app.

Timing and transfer specifics: Cash App shows available balances and may impose transfer timing for certain external withdrawals or ACH transfers. If you plan rapid buy/sell activity, check the active settlement rules and any temporary restrictions in your account.

How to buy stocks on Cash App

This section explains in detail how to invest in stocks on Cash App using the in-app flow.

1. Open the Cash App and tap the Investing/Stocks tab.
2. Use the search bar to enter a company name or ticker symbol.
3. Select the stock or ETF from the search results to open its detail page.
4. Tap Buy. Cash App typically uses cash-based orders, specifying the dollar amount you want to invest rather than share quantity.
5. Choose a preset amount (e.g., $5, $25) or enter a custom dollar amount. The app supports fractional share purchases, so your dollar amount will be converted to the corresponding fraction of a share.
6. Confirm the purchase and authenticate with your PIN, Touch ID, or Face ID as required.
7. Cash App will place the order. If the market is open, the order will attempt to execute immediately (subject to routing and price). If placed outside market hours, the order will be queued and executed when markets open under the app’s routing practices.

Practical tips when buying:

• Exact-dollar approach: Cash App’s interface emphasizes dollar amounts, which is helpful for budgeting small-dollar investments.
• Fractional shares: When you enter a dollar amount smaller than the full share price, Cash App purchases a fractional share proportionate to that amount.
• Confirmation and receipts: After execution, the app updates your portfolio with the new position and provides a trade confirmation and transaction history entries.

How to invest in stocks on Cash App also means understanding order routing and that Cash App generally places market-type orders for retail customers; specific routing practices are disclosed in the account agreement.

Fractional shares

Fractional shares let users buy part of a share for small-dollar investing. Key points:

• Minimums: Cash App allows fractional share purchases with amounts as low as $1 (confirm the current minimum inside the app).
• Non-transferability: Fractional shares are typically not transferable to external brokerages as a fractional lot; if you transfer out a position, it may need to be liquidated or converted per the custodian’s rules. The customer agreement describes fractional share transfer limitations.
• Use cases: Fractional shares are useful to dollar-cost average into expensive stocks, diversify with limited funds, or buy into specific companies without saving for a full share.

When planning how to invest in stocks on Cash App, fractional shares are a central feature for many beginner investors.

Order types and market hours

Understanding how orders behave on Cash App will help set expectations:

• Order types: Cash App primarily handles simple market orders (buy or sell at current market prices). The app may not expose advanced order types like limit, stop-loss, or conditional orders.
• Placing orders outside market hours: You can schedule or place orders 24/7 in the app, but execution occurs during U.S. market hours (regular trading hours are commonly 9:30 AM to 4:00 PM Eastern Time; pre-market and after-hours trading availability is limited and depends on the broker and product). Orders placed outside market hours will execute when the market reopens.
• Execution and price uncertainty: For market orders, the execution price can differ from the last displayed price due to market movement between order placement and execution.

Cash App’s Help materials and consumer reviews note that the app is optimized for simplicity rather than advanced trading strategies that depend on sophisticated order types.

How to sell stocks

Selling a position on Cash App follows a straightforward in-app process:

1. Open the Investing/Stocks tab and tap Portfolio.
2. Select the stock or ETF you want to sell.
3. Tap Sell and choose whether to sell by dollar amount or by shares (if the app supports share-based selling for whole shares).
4. Enter the amount you want to sell and confirm the sale with your PIN or biometric authentication.
5. Once executed, the sale proceeds are credited to your Cash App balance. Settlement timing and available withdrawal timing are displayed in the app — proceeds may have short holds depending on market rules and the custodian’s settlement policies.

Important notes on selling:

• Selling a fractional share will sell the corresponding fraction and credit the dollar proceeds.
• Selling is a taxable event. Keep records for tax reporting.
• If you sell and immediately attempt to withdraw funds or transfer out-of-app investments, watch for settlement-related restrictions (for example, cash from a sale may not be immediately available for withdrawal until settlement completes).

Fees, taxes, and limits

Fees and pricing:

• Commission: Cash App advertises commission-free trades for stocks and ETFs. That means there is no per-trade commission in the retail interface.
• Regulatory and external fees: Some regulatory fees (such as small SEC fees) or fees related to transfers may still apply; these are typically disclosed at trade confirmation. If you use certain transfer services or wire transfers, external fees may apply.

Taxes and reporting:

• Selling investments generally creates taxable events (capital gains or losses). Cash App provides tax documents (e.g., 1099 forms) when required by the IRS. Users are responsible for tracking cost basis, holding periods, and reporting sales on tax returns.
• Dividends: Qualified and non-qualified dividends paid by holdings are taxable in the year paid; Cash App reports dividend income per tax forms when applicable.

Limits and restrictions:

• Buy limits: Cash App may impose buy limits based on account verification, sponsored account settings, or anti-fraud controls. Sponsored accounts can have preset monthly buy limits set by the sponsor.
• Day-trading and regulatory limits: Cash App does not offer margin, so typical pattern-day-trader (PDT) margin rules do not apply; however, account-specific controls may restrict frequent trading, especially for brand-new accounts.

As of 2025-12-30, Cash App Help and third-party reviews note that the trade experience is low-cost, but users must remain mindful of tax reporting responsibilities and the potential for small regulatory fees.

Sponsored / Family accounts

Cash App includes options for sponsored accounts for minors or family setups. Understanding sponsored accounts helps if you are managing how to invest in stocks on Cash App for another person:

• Sponsor approval: A sponsoring adult can enable investing for a dependent or family member, and the sponsor must approve the sponsored account terms.
• Monthly buy limits: Sponsors can set monthly maximums for stock purchases in sponsored accounts. Typical ranges may be modest (for example, small-dollar monthly caps) to manage risk for younger investors.
• Tax responsibility: The tax implications for sponsored account activities depend on the custodian’s rules and U.S. tax law. Sponsors should consult tax guidance for gift and custodial accounts.

Cash App’s Help documentation describes how to set up and manage sponsored accounts, including the ability to adjust limits and view activity.

Account custody, third-party brokers, and settlement

Cash App Investing uses a third-party custodian/broker-dealer to carry customer securities. This is a common practice: the app provides the user interface and customer experience, while a registered broker-dealer (and clearing firm) executes and holds securities on customers’ behalf.

• Custody: Securities are held in street name by the carrying broker or custodian (for example, DriveWealth LLC historically acted as a clearing/settlement partner for some mobile brokerages — check current disclosures in Cash App for the active custodian partner). The customer agreement names the carrying firm and explains custody arrangements.
• Zero-balance brokerage model: Cash App generally operates on a zero-balance model where cash is in the app wallet and stock purchases are funded as needed.
• Settlement mechanics: Trades settle per standard market settlement rules. After a sale, cash becomes available per the custodian’s settlement timeline. If you wish to transfer assets to another broker, follow the app’s transfer and ACAT-related steps — note fractional share transfers can be restricted.

Features to help beginners

Cash App includes several features designed for small-dollar investors and newbies:

• Round Ups: Convert spare change from purchases into stock investments automatically.
• Auto Invest: Schedule recurring purchases (daily, weekly, monthly) to dollar-cost average into stocks or ETFs without manual intervention.
• Fractional shares and no minimums: These lower the barrier to entry for new investors with limited funds.
• Portfolio tracking: The app shows simple portfolio performance metrics and trade history.

These features make Cash App suitable for first-time investors learning how to invest in stocks on Cash App while using automated habits to build positions.

Risks, limitations, and suitability

This section highlights risks and limitations so readers can judge whether Cash App fits their needs:

• Market risk: Investments can lose value. SIPC does not protect against market declines.
• Product limitations: No access to margin, options trading, mutual funds, bonds, or advanced orders. Active traders or those needing complex strategies may find the app limiting.
• Fractional share constraints: Transferring fractional positions out of the app may be restricted; full-lot transfers can require selling fractional holdings.
• Limited research tools: Cash App prioritizes simplicity over deep research tools, charting, or screening features favored by advanced traders.

Suitability: Cash App is best for beginners, long-term small-dollar investors, or users who want quick, mobile-first access to U.S. stocks and ETFs. It is less suited for professional traders or investors requiring advanced order types and rich analytics.

Troubleshooting, support, and account management

Common account tasks and support options when figuring out how to invest in stocks on Cash App:

• Canceling orders: If you place an order that has not executed, use the app interface to cancel it if cancellation is supported. Once an order is executed in the market, it cannot be canceled.
• Contact support: Cash App offers support through in-app help, chat, and support articles. For urgent or account-security issues, use the app’s official support channels and follow verification steps.
• Viewing disclosures: Check the House Rules, Customer Account Agreement, and trade confirmations inside the app for full legal terms.
• Transferring or closing accounts: To transfer assets out or close your investing account, follow the in-app instructions and the custodian’s transfer process. Keep in mind fractional share transfer limits and potential processing times.

If you encounter technical issues or suspicious activity, immediately contact Cash App Support through the in-app help feature.

Comparison with other brokerages (brief)

High-level comparison points to help you evaluate Cash App against broader brokerage options:

• Pros: Commission-free trades, fractional shares, mobile-first design, low barriers to entry, automated features like Round Ups and Auto Invest.
• Cons: Limited product set (no options, margin, or mutual funds), fewer research and charting tools, simplified order types, potential restrictions on fractional transfers.

If your needs evolve beyond small-dollar investing, consider platforms with advanced tools and full-service broker features. For Web3 wallet or crypto needs, explore Bitget Wallet and Bitget’s exchange offering for broader crypto and Web3 features.

Tax reporting and recordkeeping

How taxes work when you learn how to invest in stocks on Cash App:

• Tax documents: Cash App provides tax documents such as Forms 1099 when required by the IRS. These documents report dividends, proceeds from sales, and other taxable events.
• Cost basis and holding period: Maintain records of purchase dates, amounts, and sale proceeds to calculate capital gains or losses. Cash App may provide cost-basis reporting in statements, but verify the provided data against your records.
• Reporting responsibility: You are responsible for reporting capital gains, losses, and dividend income on your tax returns. Consult a tax professional for specific tax advice.

As of 2025-12-30, Cash App and tax-reporting resources emphasize that investors should expect year-end tax forms for taxable activity in their investing accounts.

References and further reading

• Cash App Help — Buying Stock (official help articles listed in the app)
• Cash App — Stocks overview and product pages (marketing and product detail pages inside the app)
• Cash App Help — My First Stock (educational onboarding material)
• Cash App Help — How to Buy and Sell Stocks with a Sponsored Account
• Cash App Help — Understanding your Cash App Investing Account
• Benzinga guide — How to Buy Stocks on Cash App (consumer guide)
• U.S. News review — Cash App Investing (product review and consumer context)

As of 2025-12-30, these sources describe Cash App Investing as a commission-free, fractional-share-friendly brokerage for beginner investors.

Practical checklist: how to invest in stocks on Cash App (quick steps)

• Create and verify your Cash App account (identity verification and age/residency checks).
• Enable Investing by accepting the customer agreement in the Stocks tab.
• Fund your Cash App balance or link a debit card for purchases.
• Search for a ticker, tap Buy, enter a dollar amount, confirm with your PIN/biometrics.
• Monitor your portfolio, enable Auto Invest or Round Ups for dollar-cost averaging, and review tax documents annually.

Closing guidance and next steps

If you’re ready to start learning how to invest in stocks on Cash App, begin with small amounts and use features like fractional shares, Round Ups, and Auto Invest to build disciplined habits. Keep records of trades for tax reporting, and consult the in-app disclosures for the latest rules on custody, settlement, fees, and sponsored account limits.

For users interested in combining Web3 or broader crypto features with mobile investing, explore Bitget Wallet and Bitget’s platform for dedicated Web3 tools and crypto asset management. Bitget provides wallet and exchange products tailored for on-chain activity and trading beyond the equities market.

Further explore the official Cash App Help articles inside the app to confirm up-to-date procedures, regulatory disclosures, and any product changes.

As of 2025-12-30, according to Cash App Help and independent reviews (Benzinga, U.S. News), Cash App Investing provides commission-free U.S. stock and ETF trading with fractional shares and a mobile-first experience.